Apr 13, 2024  
2023-2024 College Catalog 
    
2023-2024 College Catalog [ARCHIVED CATALOG]

LGM 102 - Inventory Control

3 Credits, 3 Contact Hours
3 lecture periods 0 lab periods

A study of inventory control concepts and techniques. Includes, cost concepts, determining size and nature of inventory, forecasting, and inventory planning and control. Also includes ordering methods, controlling pilferage, and matching customer demand with supply.

Prerequisite(s): GTM 105  or required score on the Mathematics assessment test.
Button linking to AZ Transfer course equivalency guide    button image Prior Learning and link to PLA webpage

Course Learning Outcomes
  1. Describe common costs associated with inventory
  2. Discuss techniques for determining size and nature of inventory
  3. Compare multiple forecasting techniques.
  4. Describe methods of inventory planning and control.
  5. Summarize ordering methods.

Outline:
  1. Cost concepts that drive inventory management.
  2. Cost benefits of sourcing or making
    1. Inventory investment (capital investment)
    2. Insurance
    3. Taxes
    4. Storage & acquisition procession
    5. Controlling pilferage
    6. Warehouse costs
    7. Lead time
    8. Customer Satisfaction
    9. Value of achieving
      1. Cost of failing
      2. Obsolescence
  3. Determining Size and Nature of Inventory
    1. Range of merchandise
    2. Types of stock
    3. Variations in costs
    4. Cost of capital investment
    5. Mail order operations
    6. Wholesale/retail finished goods inventory costs
    7. Chain of supply
    8. Distribution inventories
    9. Customer requirements-activity based costing (ABC) analysis
    10. Push versus pull inventory strategy
  4. Forecasting
    1. Purpose
    2. Rationale for automation
    3. Techniques
      1. Averages
      2. Lost period sales
      3. Moving average
    4. Reasons for forecast failure
    5. Qualitative versus quantitative methodologies
  5. Inventory Planning and Control
    1. Company strategy
    2. Sales plan
    3. Sourcing strategy
    4. Master production plan
    5. Typical inventory controls
      1. Stock control cost concepts
      2. Time based logistics strategies
        1. Just in Time (TPS)
        2. Vendor Managed Inventory (VMI)
        3. Continuous replenishment
  6. Ordering Methods
    1. Fixed order quantity (FOQ)
    2. Fixed order point (FOP)
    3. Calculating order quantity
    4. Fixed interval ordering
    5. Order up to level
    6. Stock order point


Effective Term:
Full Academic Year 2018/2019